I’m beginning my journey into real estate investing with the goal like many of you of generating passive income and discovering financial freedom without having to rely on a “day-job” for much longer, so I can travel more and spend more time with my young kids/family.

Lower-income renters tend to generate significantly higher maintenance and turnover costs.

Which leads us to 33-  Assault on property rights.  

They are putting us on a different type of lead generation system and hopefully this generates quality motivated seller leads.

What I mean by that is - not just focusing on getting the leads at the very start.

Someone may have lead generation problems.

You lead with, "I am a local homebuyer."

Maybe start finding deals to wholesale, which will sharpen your deal evaluation skills and generate cash for future investments.If you find really good eals, you could even require that you participate or get a piece of the deal.

Just because your inspector found these items doesn't mean he found them all.The simple fact that the foundation was incorrectly done, that leads me to suspect that there are many multitudes of issues within.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.